3.4.3Decommissioning

OUR APPROACH

SBM Offshore is committed to the safe and environmentally sound recycling of assets at the end of their lifecycle, performed in compliance with SBM Offshore’s Responsible Recycling Policy, which adheres to the International Convention for the Safe and Environmentally Sound Recycling of Ships (the ‘Hong Kong Convention’) of the International Maritime Organization (IMO) and EU Ship Recycling Regulation 1257/2013 or equivalent standard, as well as standardized yard activities and ship recycling plans.

SBM Offshore works with specialized suppliers and ship recycling facilities that have suitable infrastructure, compliance with the United Nations Guiding Principles on Business and Human Rights (UNGP) and other internationally applicable regulations; an adequate management system, including health and safety procedures in place; and trained personnel. During the projects, specialists inspect the assets to identify hazardous materials and to ensure the controlled removal and disposal of such materials as part of the decommissioning and recycling work. SBM Offshore aims to minimize adverse environmental and social impacts related to the decommissioning and recycling activities of each vessel, while maximizing circular economy opportunities.

SBM Offshore’s processes outline the key steps in conducting the decommissioning of an offshore production facility, while ensuring safe and responsible recycling. Aiming to improve the preparation of the next projects of decommissioning and recycling and de-risk execution, in 2024 SBM Offshore developed a provisional decommissioning execution plan for 8 offshore production facilities. These plans have been added as a 2024 performance indicator and are included at Management and Supervisory Board meetings, reinforcing transparency and accuracy at corporate level. The governance of decommissioning falls under the Managing Director – Operations – a member of the Executive Committee.

Performance

During 2024, two projects were in execution: the completion of Deep Panuke MOPU PFC recycling and the decommissioning and recycling of FPSO Capixaba, which is currently under execution with estimated completion in 2026.

Deep Panuke

The Deep Panuke Production Field Center (PFC) recycling project reached completion in Nova Scotia, Canada in January 2024, with the final certificate received from RJ MacIsaac Construction Ltd. (RJMI) and the delivery by Lloyds Register of the statement of Compliance of Completion of Ship Recycling.

The project began in 2020 and was safely achieved and aligned with SBM Offshore’s Responsible Recycling Policy. Overall, 97% of the waste materials generated by the project were sold, recycled or reused, with the remaining 3% consisting of waste, which was safely disposed of, meeting the applicable environmental rules and regulations.

Furthermore, this project contributed to Sustainable Development Goals by promoting local development, establishing traceable waste management streams and developing initiatives such as immersing reef balls to stimulate underwater marine life. The successful project has strengthened SBM Offshore’s reputation in Nova Scotia as the province looks at renewable projects, and where SBM Offshore had the opportunity to team up with DP Energy for Floating Offshore Wind developments.

FPSO Capixaba

The FPSO Capixaba reached the final phase of its lifecycle after operating in Brazil from 2006 until April 2023, with over 244 million barrels of oil produced on behalf of client Petrobras. After the successful unmooring and towage from Jubarte field in Brazil, FPSO Capixaba safely arrived in Frederikshavn, Denmark on May 5, 2024, with handover to M.A.R.S. ship recycling facility accomplished upon arrival.

The unit was exported in accordance with the applicable regulations, including the Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and their Disposal and EU Regulation no. 1013/2006 on shipments of waste. The FPSO Capixaba was delivered to M.A.R.S. with the International Ready for Recycling Statement of Compliance issued by American Bureau of Shipping (ABS).

The FPSO Capixaba project is a historical milestone for SBM Offshore and marks efforts and investment by employees, partners and suppliers to ensure efficient execution and minimum impact to the environment. The project follows the industry’s leading policy and incorporates the recent positive experience of the Deep Panuke project. This is how SBM Offshore addresses a topic that is material to the business, from an economic, environmental and social perspective.

SBM Offshore has taken part in various decommissioning and recycling forums aimed at adding value from experience while benefiting from strategic stakeholder experience. SBM Offshore has participated as a co-chair in the decommissioning expert group of IOGP since 2023 to promote the FPSO Safe and Environmentally Sound Recycling. Areas of attention for this group are:

  • Sharing best practices and lessons, using experience from IOGP members.
  • Developing good practice guidelines for FPSO decommissioning and recycling, in compliance with international and local regulations.
  • Enabling supply chain availability and readiness by compiling forecast data on demand.
  • Engaging with external expert groups, NGOs and other relevant stakeholders to learn about expectations and identifying common standards and best practices.

FUTURE

During 2025, SBM Offshore will continue the execution of the safe and environmentally sound recycling of FPSO Capixaba in Denmark. SBM Offshore has the ambition, to continue improving fleet decommissioning and recycling performance through planning and preparation for the next wave of decommissioning, whilst continuously developing and applying industry best practices.